Orient Cable: Utilizing Overseas Investment Platform to Promote International Market Expansion, Company Capacity Fully Booked by 2025

Offshore wind power is expected to reach a peak in installations, with robust demand in overseas markets. Top-tier enterprise Orient Cable (603606.SH) may re-enter a fast development track. Chairman Xia Chongyao stated at the 2024 performance exchange meeting held today that domestic offshore wind power, especially deep-sea wind power, will enter a rapid development period. The overseas market is also developing rapidly, and the company will steadily advance international market expansion and industrial layout.

Orient Cable performed exceptionally well in the overseas market in 2024, and investors frequently raised related questions at the performance meeting.

Independent Director Liu Yansen replied that the company achieved overseas business revenue of 733 million yuan in 2024, up 480.54% YoY, mainly from Europe, Southeast Asia, and the Middle East. In 2024, the company's UK subsidiary was successfully registered.

Xia Chongyao added that the company has clearly defined its internationalization strategic goals in the "14th Five-Year Plan" and will actively utilize overseas investment platforms to steadily advance international market expansion and industrial layout in the future.

Regarding the domestic market, several wind power industry insiders told Caixin reporters that, based on previous tender situations, after two years of low performance, offshore wind power installations are expected to experience a small peak again. The industry generally expects new offshore wind power installations to exceed 10GW in 2025.

Xia Chongyao holds the same view. He believes that China's offshore wind power industry, especially deep-sea development, will enter a rapid development period in the future.

Regarding orders, which are of concern to investors, Xia Chongyao stated that as of March 21, the company had orders on hand of 17.975 billion yuan, up 130% YoY, including submarine cable system orders of 8.827 billion yuan, land cable system orders of 6.353 billion yuan, and marine engineering orders of 2.795 billion yuan. In 2025, the company will have full orders and will organize production and delivery according to contract requirements and project progress.

In terms of capacity, General Manager Xia Feng introduced that the company will high-standardly advance the construction of the Orient Central Research Institute & Headquarters project; complete the industrial optimization of the (Eastern) Future Factory Phase II project and put it into operation; further improve the overall layout of the Southern Headquarters and complete the construction of the (Southern) Future Factory to ensure the Southern Headquarters and base are put into operation; and start the construction of the Northern Industrial Base, integrating resources to enhance the influence and market competitiveness in the northern region.

At the meeting, an investor asked that this year's government work report first mentioned "deep-sea technology." What is the commercial progress of the company's deep-sea power transmission equipment (such as 1500-meter umbilical cables) in offshore oil and gas development?

Xia Chongyao revealed that as a global single champion product, the company's umbilical cable products have been applied in 1500-meter deep-sea oil projects. Previously, domestic umbilical cables were mostly imported, but they will gradually achieve domestic substitution in the future. Umbilical cables are customized products, and the gross profit margin depends on specific project conditions.